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Chapter 6 CONCLUSION The Indian Aviation Sector has witnessed tremendous growth in the recent past which is driven by sound demographic, macroeconomic, government aided reforms & market dynamics. Almost 35 % of exports from India & 97% foreign tourists to India arrive by Air each year. Aviation sector has undergone a major facelift in past 5-6 years. According to Union Budget 2012, with a compound annual growth rate of 18 percent, today Indian Aviation Industry ranks ninth in the global civil aviation market. It has been estimated that India would need 1032 new aircrafts worth around US $ 138 billion by 2028. It has been forecasted that the air traffic in India will continue to grow at the rate of 8 10% over the next 10 years. A major hurdle in this growth of Indian aviation industry is the shortage of qualified and experienced commercial pilots. Though India has sufficient number of commercial pilots, they are either not type-rated or do not have required flying experience. However, the airlines can still recruit these pilots and train them on their aircrafts. But this becomes a costly affair. And even if an airline invests in such pilots, it may not be able to retain them for a longer period which means loss to the airline. Therefore, it is very important that these airlines have systematic recruitment and retention practices in place. Recruitment is considered as one of the most important functions of an organization. Unless the appropriate people are hired, even the best plans, organizational charts, 247
and control systems would not yield good results. Decisions regarding employee testing, work policies, programs, compensation & corporate image all have an impact on recruiting. (P. Jyothi, et al, 2011) Of course, employees can decide to leave the form of their own accord as well as join it. And in the war for talent, rival firms are likely to lure valued employees away. Employees may find that their options and opportunities are more attractive across firms rather than within only one firm. (Snell, et al, 2007) Majority of the Indian air carriers today are following the systematic practices of recruitment concerning these pilots that affect their subsequent retention with the airlines. The researcher found that there are five factors of recruitment, namely, Encouraging & Employee-friendly Recruitment Policy, Impact of External Forces, Organizational Internal Factors, Employment Brand, and Organizational Growth & Self Advancement Opportunities that are closely related to four factors of retention, namely, Positive Work Culture, Opportunities for Individual Growth & Development, Salary-Benefit Package and Opportunity for Self Achievement. The most important factor responsible for retention of these pilots is Positive Work Culture that is related to most of the recruitment practices followed by the airlines. Salary-benefit Package has the lease effect on the retention of these pilots as it acts as a hygiene factor of Herzberg s theory of motivation, the absence of which leads to dissatisfaction, but presence of which does not guarantee satisfaction. Most of the pilots are paid well by most of the airlines and that no longer motivates them to stay 248
with these carriers further. External forces, internal factors and employment brand play an important role in the retention of these pilots. Indian air carriers should focus their recruitment and retention efforts on the factors mentioned above so that they can recruit the pilots who match their requirements and also can be retained for a longer time. This will help them to reduce their HR costs to a considerable extent, especially in today s scenario where almost all major airlines are going through financial crisis and also to make them realize their future growth plans. 6.1 Implication 1. The present study is of special relevance to Indian Aviation Industry, especially the Indian air carriers that operate scheduled flights in India. The findings will help these carriers in improving their HR practices with focus on recruitment that will subsequently lead to low employee turnover of commercial pilots. This in turn will reduce their employee cost to a large extent and will give them competitive advantage over their counterparts in Middle-East & Africa who are the major poachers of these pilots. 2. The study will help the scheduled airlines in India to understand the views of commercial pilots who work with them regarding their recruitment and retention & whether their expectations regarding the same are met by the airlines. 249
3. This study will help the airlines to tackle the problem of shortage of suitable commercial pilots and will allow the airlines to grow. 4. The study will be of importance to the HR managers of the Indian air carriers enabling them to procure effective manpower in terms of commercial pilots which, in turn, will lead to enhanced organizational performance and improved morale among pilots resulting from their effective retention practices. 5. The findings of the study reveals a distinct pattern of relationships among different elements of recruitment & retention and thus, will help in evolving models for recruitment and retention strategies for commercial pilots in India which may be useful even for air carriers in other countries. 6. It will help the future researchers to design their in-depth research studies in varied dimensions of recruitment and retention of commercial pilots, especially in the following areas: a) factors influencing recruitment and retention of commercial pilots; b) the nature of recruitment and retention policies of commercial pilots; c) the sources of commercial pilots recruitment; d) the methods and techniques of recruitment and retention of commercial pilots; e) the procedure for evaluation of these practices, etc. 250
6.2 Limitations All findings are based on the information provided by the respondents and are subject to the potential bias and prejudice of the people involved. The scope of the study is restricted to the study of commercial pilots working with Indian air carriers. As such, the findings may change if the study was to be applied to a different country or economy. The present study was conducted only in Indian air carriers that operate scheduled flights. Majority of the pilots surveyed for the study were from Mumbai. The responses therefore may not be representative of commercial pilots residing in other parts of the country. Sample population consisted of a random sample of pilots working with the Indian air carriers. Random sampling error may occur due to chance variation in elements selected for sample. All airlines in which HR executives were surveyed are Full Service Airlines, but also operate as Low Cost Carriers under some of their brands. However, the practices used by Low cost Carriers that do not have Full Service Flights may be different. The extent to which the objectives of the study could be reached were affected by time limitations. Findings reflect the recruitment and retention practices of commercial pilots in India during a growth period on Indian aviation industry. 251